View PDF - Michigan Labor Market Information

FOR IMMEDIATE RELEASE
Date: January 18, 2016
Contact: Kurt Weiss, 517-335-0050
Michigan’s December Unemployment Rate Up Slightly
Annual Rate Falls for Seventh Consecutive Year
Lansing – Michigan’s seasonally adjusted unemployment rate in December edged up over
the month by one-tenth of a percentage point to 5.0 percent, according to data released
today by the Michigan Department of Technology, Management & Budget (DTMB). The
state’s workforce rose by 14,000 over the month as both total employment (+9,000) and
the number of unemployed (+5,000) increased.
The Michigan jobless rate in December 2016 was one-tenth of a percentage point below
the state’s December 2015 rate of 5.1 percent. The national jobless rate decreased by
three-tenths of a percentage point over this period. The state’s December unemployment
rate was three-tenths of a percentage point above the national rate. The U.S. jobless rate
rose slightly by one-tenth of a percentage point to 4.7 percent in December.
“Michigan’s modest jobless rate hike in December reflected continued entry into the state’s
workforce. The second half of the year was marked by robust labor force expansion, with
2016 displaying the strongest workforce growth rate for the state since 1999,” said Jason
Palmer, director of the Bureau of Labor Market Information and Strategic Initiatives. “In
2016, payroll jobs rose in the state for the sixth consecutive year while Michigan’s
unemployment rate continued a downward trend, falling for the seventh year in a row.”
Monthly Labor Force Trends & Highlights

Michigan’s December jobless rate of 5.0 percent was the highest recorded for the state
in 2016. However, monthly jobless rates in 2016 were in a narrow range from 4.5 to 5.0
percent.

The minor jobless rate hike in December marked the fourth consecutive monthly
advance. Since the August rate of 4.5 percent, Michigan’s unemployment rate
increased by a half percentage point.

During the four months of unemployment rate increases in the state, the number of
unemployed advanced by 29,000. However, this was primarily due to the large influx
of workers entering the state’s labor force. From August to December 2016,
Michigan’s labor force jumped by 82,000 or 1.7 percent. Total employment rose by
54,000 or 1.2 percent over this period.

From the third quarter to the fourth quarter 2016, the state’s unemployment rate
increased by four-tenths of a percentage point to 4.9 percent. All four quarters in 2016
showed rates below 5.0 percent, a first since 2000.
MICHIGAN
Labor Force Estimates
Seasonally Adjusted
(Data in Thousands)
Civilian Labor Force
Employment
Unemployment
Rate (Percent)
December
2015
November
2016
December
2016
4,771
4,527
243
5.1
4,873
4,633
240
4.9
4,887
4,642
245
5.0
Change
Month
Year
14
116
9
115
5
2
xxx
xxx
Michigan’s 2016 Preliminary Annual Average Labor Force Data
Michigan’s preliminary annual average unemployment rate in 2016 was 4.8 percent, which
was slightly below the 4.9 percent national annual rate. Total employment in Michigan
averaged 4,612,000 in 2016, while the number of unemployed in the state averaged 231,000.
The state’s annual average labor force level was 4,843,000.
Annual Average Trends and Highlights

Michigan’s preliminary 2016 annual average unemployment rate of 4.8 percent
declined by 0.6 of a percentage point from the 2015 annual rate of 5.4 percent.

2016 marked the seventh consecutive year of annual unemployment rate reductions in
Michigan. The state’s rate fell by 8.9 percentage points since the recent annual high of
13.7 percent recorded in 2009.

Michigan’s 2016 annual rate was the fifth lowest recorded for the state since the official
series began in 1976, and the lowest annual rate since the 3.6 percent posted in 2000.

From annual 2015 to annual 2016, the number of unemployed in Michigan dropped by
27,000 or 10.4 percent. The U.S. as a whole registered a 6.6 percent reduction over
this period. Since the end of the Great Recession in 2009, the number of unemployed
in Michigan fell by 439,000 or 66 percent.

The state’s workforce expanded by 92,000 or 1.9 percent in 2016 after remaining
essentially flat from 2014 to 2015. 2016 was only the third year of annual labor force
growth in Michigan since 2006.
(more)
Unemployment December 2016, p.3 of 5
Detroit Metropolitan Area’s December Jobless Rate Unchanged, Annual Rate Down
The Detroit-Warren-Dearborn Metropolitan Statistical Area’s (MSA’s) seasonally adjusted
unemployment rate of 5.6 percent in December was unchanged over the month. The
Detroit area’s workforce advanced by 6,000 as total employment increased by 4,000. The
number of unemployed in the area was little changed in December. The metro region’s
December jobless rate was seven-tenths of a percentage point above the 2016 monthly
low rate of 4.9 percent posted in both July and August, but was three-tenths of a
percentage point below the 2016 monthly high rate of 5.9 percent recorded in January.
From December 2015 to December 2016, the Detroit metropolitan area’s jobless rate
declined by half of a percentage point. Over that period, both total employment and the
area’s workforce registered solid gains. Since December 2015, the number of
unemployed in the region declined slightly by 3.3 percent, which was similar to both
Michigan and the nation, with all three showing only minor changes over that period.
Detroit-Warren-Dearborn MSA
Labor Force Estimates
Seasonally Adjusted
(Data in Thousands)
Civilian Labor Force
Employment
Unemployment
Rate (Percent)
December
2015
November
2016
December
2016
2,005
1,883
121
6.1
2,080
1,965
116
5.6
2,086
1,969
117
5.6
Change
Month
Year
6
81
4
86
1
-4
xxx
xxx
Detroit MSA 2016 Preliminary Annual Average Labor Force Trends and Highlights
The Detroit-Warren-Dearborn Metropolitan Statistical Area’s (MSA’s) preliminary annual
average unemployment rate in 2016 of 5.4 percent decreased by eight-tenths of a
percentage point from the 2015 annual rate of 6.2 percent. This marked the seventh
consecutive annual rate reduction for the region, falling by 9.7 percentage points since the
recent high of 15.1 percent recorded in 2009. From 2015 to 2016, total employment rose
by 75,000 or 4.0 percent and the number of unemployed declined by 13,000 or 10.5
percent (very similar to the statewide unemployment drop of 10.4 percent over that
period). The net result was a 62,000 or 3.1 percent increase in the metro area workforce
over the year. The 2016 total employment gain for the region was the sixth consecutive
annual increase, and was the largest yearly advance over that period dating back to 2011.
(more)
Unemployment December 2016, p.4 of 5
December Payroll Jobs Little Changed, Annual Jobs Up Again
According to the monthly survey of employers, seasonally adjusted Michigan payroll jobs
were little changed in December, edging down slightly by 2,000 to 4,364,000. Relatively
minor job reductions in construction (-3,000), trade, transportation and utilities (-2,000),
and government (-2,000) were somewhat offset by job gains in other services (+3,000)
and leisure and hospitality services (+2,000). Michigan’s remaining major sectors
recorded only marginal changes over the month.
Industry Employment Trends and Highlights

In 2016, Michigan recorded a sixth consecutive year of payroll job gains. Preliminary
annual 2016 data indicate that job totals rose over the year by 90,000 or 2.1 percent.
Since 2010, overall payroll jobs in Michigan rose by 470,000 or 12.2 percent. The
2016 job advance was the second highest annual percentage gain since 2010.

Michigan job totals for the last three months of 2016 were the highest monthly levels of
the year.

The minor over-the-month job gain in leisure and hospitality services pushed its
December total to the highest monthly level in 2016. This sector mostly trended
upward from May through December.

Trade, transportation and utilities’ marginal December job decline continued a mostly
downward trend recorded in this sector since April. From April to December, jobs in
trade, transportation and utilities were down by 10,000 or 1.2 percent statewide. Since
December 2015, jobs in this sector declined slightly by 3,000 or 0.4 percent.

Throughout 2016, jobs in several Michigan industry sectors have displayed fairly
consistent monthly upward trends, including financial activities, professional and
business services, and education and health services.

From December 2015 to December 2016, payroll jobs in Michigan increased by 75,000
or 1.7 percent, which slightly outpaced the national gain over this period (+1.5 percent).
Sectors with above average percentage job gains over this period were professional
and business services (+4.3%), financial activities (+3.8%), leisure and hospitality
services (+3.8%), information (+3.0%), construction (+2.6%), and other services
(+2.2%).

Seasonally adjusted average weekly hours and earnings of production workers in
manufacturing increased over the month, but declined over the year.
(more)
Unemployment December 2016, p.5 of 5
MICHIGAN
Payroll Employment Estimates
Seasonally Adjusted
(Data in Thousands)
Total Nonfarm Payroll Jobs
Natural Resources & Mining
Construction
Manufacturing
Transportation Equipment
Trade, Transportation & Utilities
Retail Trade
Information
Financial Activities
Professional & Business Services
Education & Health Services
Leisure & Hospitality Services
Other Services
Government
December
2015
November*
2016
December**
2016
4,289
7
152
594
174
774
466
57
211
646
659
421
170
599
4,366
7
159
597
179
772
469
58
218
674
668
435
171
606
4,364
7
156
596
178
771
466
58
219
673
669
437
174
603
CHANGE***
MONTH
YEAR
-2
0
-3
-1
-1
-2
-3
0
1
-1
1
2
3
-2
75
-1
4
3
4
-3
0
2
8
28
10
16
4
5
* Final data for November
** Preliminary data for December
*** Change calculated using unrounded data
Hours & Earnings for Production Workers
Seasonally Adjusted
Manufacturing
Average Weekly Earnings
Average Weekly Hours
December
2015
November
2016
December
2016
$891.39
43.9
$851.11
42.0
$853.93
42.4
CHANGE
MONTH YEAR
$2.82
0.4
-$37.46
-1.5
Transportation Equipment
Average Weekly Earnings
Average Weekly Hours
$1,205.15
47.0
###
$911.06
42.2
$963.35
43.4
$52.29 -$241.80
1.2
-3.6